(Newser)
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News Corp. and Yahoo are in talks over combining MySpace and other News Corp. entities with Yahoo, the Wall Street Journal reports today. The deal, which could fend off Microsoft's $44.6 billion hostile takeover bid, would allow Yahoo to remain independent while giving the Murdoch-run company a stake of roughly 20%. An acquisition by Microsoft still seems the most likely outcome, but Yahoo is scrambling for other options.

News Corp. and Yahoo have discussed a deal in the past, but have never agreed on MySpace’s value—which the Murdoch-ites place between $6 billion and $10 billion. The pact currently on the table would include a major cash infusion for Yahoo. Rupert Murdoch coyly left the door open to a deal on a recent earnings call: “I think that day has passed but you never know.”